Aggregate Limits Explained
What Is an Aggregate Limit on a GL Policy?
The aggregate limit is the absolute maximum your GL carrier will pay total during the policy year — no matter how many claims happen. Most contractor policies carry a $2M aggregate on top of a $1M per-occurrence limit.
Or call (234) 231-8427 — Mon–Fri, 9 AM–5 PM EST
How GL Aggregate Limits Actually Work
Every general liability policy has two numbers that work together: a per-occurrence limit and an aggregate limit. The per-occurrence number caps any single claim. The aggregate number caps everything the policy will pay during the policy year combined. Learn more about general liability insurance for contractors or scroll down for the details on this question.
With a standard $1M/$2M policy, the math looks like this:
- Any single claim is capped at $1,000,000 in payout.
- All claims across the policy year are capped at $2,000,000 in total payout.
- Two separate $1M claims in the same year — fully covered (you’ve used your aggregate).
- A third $1M claim in the same year — uncovered, unless an umbrella sits on top.
- When the next renewal starts, the aggregate resets to a fresh $2M for the new policy year.
Most contractor policies actually carry two aggregate limits stacked into one document. The general aggregate caps everything except products and completed operations. A separate products and completed operations aggregate caps everything tied to work you’ve already finished. Always make sure both numbers match (typically $2M each) — some carriers underwrite a smaller comp-ops aggregate that quietly leaves contractors exposed on completed jobs.
There’s a critical endorsement called per-project aggregate (forms CG 25 03 or CG 25 04) that changes the math dramatically. By default, your $2M aggregate is a single shared pool across every project, every year. A single big claim on one job can eat the entire aggregate and leave every other project unprotected for the rest of the policy year. A per-project aggregate endorsement resets the $2M for each project — effectively multiplying your protection at minimal extra cost. Most commercial GCs not only allow it, they require it.
Three practical takeaways for contractors:
- Always quote with a per-project aggregate if the carrier offers it — usually adds 5–10% to premium and dramatically expands protection.
- Always confirm products/comp ops aggregate equals your general aggregate — most completed-operations claims surface long after the job is done.
- If you run multiple large jobs at once, add a commercial umbrella — $1M–$10M extra on top of your underlying aggregate for $400–$2,000/year in most cases.
The Bottom Line
Aggregate = annual ceiling. Make sure it’s high enough for your project mix, includes per-project reset where possible, and is reinforced by an umbrella if you run multiple large jobs simultaneously.
Aggregate Limit Mistakes That Burn Contractors
Three aggregate-related mistakes we see at renewal and claim time, every single year:
- Mismatched general vs. comp-ops aggregates. Some carriers quietly write $2M general / $1M products to lower the premium. When a completed-operations claim hits two years later, the contractor discovers the comp-ops limit was half of what they thought.
- Forgetting to add per-project aggregate. A single multi-million-dollar claim can blow the entire $2M annual pool, leaving every other project unprotected for the rest of the year. Per-project aggregate solves this for 5–10% more premium.
- Treating umbrella aggregate as automatic. Most commercial umbrellas have their own separate aggregate that also resets annually. If your underlying $2M aggregate is gone, the umbrella drops down to cover — but it has its own ceiling. Stack the limits intentionally; don’t assume.
Trade Safe reviews aggregate structure on every quote and every renewal. We’ve helped dozens of contractors discover a comp-ops aggregate gap they didn’t know existed — usually before, not after, the claim that would have exposed it.
Aggregate vs. Per-Occurrence — Side by Side
| Term | What It Caps | Typical Contractor Limit |
|---|---|---|
| Per-occurrence | Any single claim | $1,000,000 |
| General aggregate | All claims in policy year (excl. comp-ops) | $2,000,000 |
| Products / completed operations aggregate | Claims from finished work in policy year | $2,000,000 |
| Personal & advertising injury | Libel, slander, ad-injury claims | $1,000,000 |
| Damage to premises rented to you | Damage you cause to space you rent | $100,000–$300,000 |
| Medical payments (no-fault, per person) | Small medical bills without admitting liability | $5,000–$10,000 |
The Trade Safe Difference
Why Contractors Choose Trade Safe
Independent Agency
We shop dozens of A-rated carriers on one application so you get the best price and the right policy form for your trade — not whatever a single carrier wants to sell you.
20+ Years in Contractor Insurance
We do nothing but contractor insurance. We know the trade classifications, the carrier appetites, and the endorsements your GC will demand on every COI.
Same-Day Certificates of Insurance
Need an additional insured added before your Monday morning walk? Text or call. We move at jobsite speed, not corporate call-center hold-music speed.
Get a Contractor GL Quote Today
An independent agent who shops dozens of A-rated carriers — and knows your trade inside and out.
Trade Safe Insurance — — Mon–Fri, 9 AM–5 PM EST